Monday, March 30, 2015

Many IBOs justify their involvement in the system of cds, tapes, books and seminars by comparing it to college. They claim they need this education and that it is much cheaper when compared to a college or university. Of course this is the upline propaganda that IBOs are fed, much like the concept that a job is a bad idea. If recruiters are encouraging you to build Amway and to drop college, I would run away as fast as possible. It is well documented that college graduates in general, earn much more than non college graduates. I'd also mention that college was a fun experience for me.

In college, it is true that not everyone graduates, but approximately half of those who start college end up graduating. Those who do not graduate still benefit from their education on a year to year or course by course basis. When you are job seeking, a college degree will give you more options than those who don't educate. This claim cannot be made by Amway IBOs. The education an IBO receives by seminars and cds do not even equate to success in Amway, much less in other venues in life. Only a small fraction of IBOs ever reach platinum, which supposedly is the break even point. So as an IBO, you have less than one half of a one percent chance to break even as compared to approximately a 50% chance of graduating college.

Also, once you graduate and receive your degree/diploma, it is complete. You have your degree and no more education is required. In Away, your education will never end. You'll be expected to invest in the tools and functions forever. Also, in Amway, there are many many many examples of people who reached levels as high as diamond or above who could not maintain the level. There are also many examples of diamonds who quit Amway. If there were such a thing as "residual" income, why would anyone quit when they could sit back and watch the cash roll in. I think the answer is quite obvious.

There is also no evidence (as far as I know) that your Amway related education of cds and seminars actually work. The tiny fraction of 1% of successful IBOs is not a good case for arguing the success of the system. Colleges on the other hand, have accreditation standards, which is nothing like the ineffective Amway accreditation of groups such as BWW, WWDB or Network 21. The results are quite telling if you look at them analytically.

The fact that IBOs even dare to compare a college education to their teaching in Amway is a joke. Try telling a prospective employer about your Amway education and see what that gets you. LOL

Friday, March 27, 2015

When I was an IBO, I often saw my upline diamond driving around town dressed in a business suit. I used to think why does he keep working if he can walk away and collect residual income? My sponsor told me that the diamond only works because he cares about his downline and wants to help them. So there are two possible scenarios, the diamond is working to help his downline out of a genuine concern, or possoibly he is working because he has to! The only difference now is that the diamond works the nite and/or graveyard shift, because many IBOs are building the business after they complete their day jobs. **We should also note that my former upline diamond dropped down to the emerald level around 2005 and has since re-established his diamond level.

Now Amway has stated that the average diamond (non founders)earns about $150,000 a year. That is a decent income, but after taxes and paying for basic expenses such as medical and dental insurance, the average diamond probably lives a very middle class lifestyle. Keep in mind that a large portion of a diamond's income comes in the form of an annual bonus, thus a diamond's monthly income may be quite small. Yes, diamonds may have other sources of income such as speaking engagements and income from standing orders and functions. But this income depends on the diamond's continued appearances and efforts.

So is it likely that a diamond is "free"? I would have to conclude that a diamond is not free, and may actually have to spend more time maintaining his group than if the diamond simply had a 9-5 job. For one thing, a diamond needs to maintain a personal group to keep qualifying for bonuses. With a poor retention rate in Amway, I am fairly sure that a diamond spends much time recruiting personally sponsored IBOs to maintain this group. Additionally, a diamond must help his six or more groups of downline platinums to maintain their businesses or face the possibility of falling out of qualification. My former diamond dropped down to the emerald level but has since re-qualified at diamond. A diamond must also dedicate time to reward up and coming movers and shakers, to keep them motivated. I got to spend time with my upline diamond when I was considered a promising up and coming pin. All of this takes up valuable time and diamonds can get spread pretty thin at times.

In order to continue to receive tools income, a diamond must also travel to numerous functions and speaking engagements. Although the tools income allegedly doubles a diamond's income, it also adds a lot of expenses, especially if the diamond and his family travel first class to show off the diamond lifestyle.

After breaking down projected income and considering projected expenses, I can only conclude that a diamond probably lives a middle class lifestyle, and probably works as much as a man with a 9-5 job, except that a diamond works nites and weekends. A good portrait of this is shown in Ruth Carter's book (Amway Motivational Organizations: Behind The Smoke and Mirrors). In the book, the diamond had a net income of over $300,000, but lived in debt, could barely pay his mortgage, and was always on the run from one function to the next. A high income means nothing if you live beyond your means.

I believe that diamonds may actually be busier at the diamond level than an average Joe who has a 9-5 J-O-B. The difference is that the diamond works the night shift. Is this the freedom you are seeking?

Wednesday, March 25, 2015

Over the years, I have seen literally hundreds (if not more) blogs and testimonials about Amway. Most of them decry the pitfalls of being an Amway IBO. Most of the complaints cite the fact that Amway in general has higher prices than comparable retailers and the fact that the system consisting of voicemail, books, cds and seminars ate up any profits the IBO may have made and resulted in net losses for most. One particular Amway apologist bemoans the fact that the internet is full of bad testimonials about Amway. The reason why there are so many negative testimonials about Amway is because over the years, thousands, possibly millions either had a bad experience for the reasons I cited above, or personally know of someone who had a bad experience. Conversely, there aren't that many testimonies of people who had great experiences in Amway. If there are some, they disappear as often as IBOs quit the business.

Amway defenders will often cite the fact that many IBOs sign up and "do nothing" as their defense to this. But I will easily point out that I haven't seen anyone say they signed up, failed to do anything or order products, quit and started blogging about a bad experience in Amway. These defenders will also compare Amway to the gym where people sign up and "do nothing". Whether true or not, I also do not see people who sign up and "do nothing" complain about not receiving health benefits by simply signing up. It is a very weak defense. Conversely, I have seen numerous accounts of folks like myself who did put in effort, some for many years, who did what upline advised and did not see the financial rewards that is promoted in "the plan".

Amway defenders will then try to justify themselves, saying that the better business bureau (BBB) receives few formal complaints about Amway. While this might be true, I would also note that many IBOs never bother to file formal complaints to the BBB or to Amway because in many, probably most cases, the person who quits and may have had a bad experience, was sponsored into the business by a friend or family member of the IBO who left the business. Many will simply leave and forget the episode and chalk it up to a learning experience in life. Some will complain, but really have to no venue to voice their remorse about joining. Some of us have found the interent to be quite effective in sharing our experiences and our opinions on why the business did not work. This is what one Amway defender calls the "internet war". What I have pointed out is that critics most often simply point out what the IBOs themselves have done. In many cases, the IBO is his own worst enemy. Afterall, critics didn't trick people into Amway meetings, or lie about some aspect of the business that later caused embarrassment. The critic simply points out what IBOs have done.

It would appear that most of the problems has a root in the AMO systems, such as WWDB, BWW, LTD, or N21. Now, not all upline leaders are unethical, but it appears that many are, and new IBOs have no way to identify the good from the bad. It also appears that some of these upline leaders will issue bad avice. Advice that is detrimental to the IBOs, but financially beneficial to themselves, such as telling IBOs to never miss a function, or to buy more cds. In many cases, these unethical uplines do not care about IBO success, their goal is just to move as many support materials as possible, so they can fund their "diamond" lifestyle. Sadly, it is also apparent that the diamond lifestyle may be a facade in some cases. An illusion of wealth portrayed as a recruiting tool. I highly suspect that many diamonds are living beyond their means and cannot actually afford the lifestyle that they portray on stage. When you do the math, it seems to bear this out.

If you recognize some of these warning signs, ask tough questions of your potential sponsor and visit this or some of the blogs linked to this one for more information.

Tuesday, March 24, 2015

Over the years, I have encountered many IBOs and they often have a common theme. They trust their upline and in some cases, consider them mentors. Now in a business venture, it might be good to have a mentor or someone to guide you, but in the Amway opportunity, most of the upline mentors make money off those who they mentor. That is a major conflict of interest but IBOs simply fail to see it. I would say the relationship is not mentor/student, but more like a paid consultant. While there's nothing wrong with a paid consultant, I still have issues with this because your sponsor, by Amway contract is supposed to train and motivate you free of charge. IBOs should be very careful about spending money on training and motivation without having product sales first because this could result in you losing

When an IBO sees the plan in a big meeting, the speaker will often be built up as a financial guru, and possibly as an expert on how to succeed in Amway. An IBO may hear something about how the trail was already blazed by upline and you just need to follow the trail. Don't re-invent the wheel, just copy what upline did. But as I have said many times before, duplication sounds easy and looks good on paper, but in real life, the vast majority of IBOs run into problems that they simply cannot overcome, such as the bad reputation that the Amway name has in the US.

What is troubling however, is that IBOs are taught to trust upline and do as they say (defacto requirement), but they are also taught that failure is their own shortcomings, even when they do exactly what upline told them. It is also troubling that many uplines will tell their faithful followers that they need to purchase more and more tools (voicemail, cds, seminar tickets). In some cases, an upline may advise their downline to sacrifice basic family needs to buy these tools. Some IBOs were advised to skip meals to buy a cd, or skip paying the mortgage to be able to attend the next big function. This kind of advice is dangerous and self serving to the upline and IBOs need to seriously consider their financial priorities if they hear this kind of dangerous advice.

I might also add that as a newer IBO or prospect, you may have heard that "everyone starts at zero", or that it's a level playing field. It is not. As a new IBO, you will likely be in the 100 PV bracket. Since Amway pays out about 31% in bonuses, your upline(s) will split up about 28% in bonuses off your efforts while you get a 3% bonus. That doesn't sound very level to me and the reality is that is will never be level with your upline leaders. They will always have an advantage over you, simply by the virtue of them signing up before you. Yes, it's possible to surpass your sponsor but that's because most people do nothing and quit. You won't surpass a tenured diamond or higher. Those leaders have too much influence over the business and the vast downlines. If you reach a point in the business where you're growing, then this will become clear to you.

So each IBO should look at things objectively and see if your upline is helping you or simply helping himself by giving you advice that ends up in profit for himself with little or nothing for you and make your decisions carefully.

Thursday, March 19, 2015

One of the humorous things that IBOs often bring up is that someone who sees Amway in a creitical eye should bring up viable alternatives. I mean if someone prevents you from fall over a cliff, they should have warned you and given you alternatives right? If I recognized you getting conned by a conman, I should find viable financial investments for you before warning you of the potential scam you are about to walk into. It sounds completely ridiculous but Amway IBOs have actually made those comments on this blog and some other Amway related websites.

Well, let's explore a few anyway jusy for fun. How about you stay home and do nothing? For most IBOs, you would be better off financially than committing your time and resources into Amway's products and their ineffective training materials and functions. If you are really dedicated to tools, sending your upline a check for $50 monthly and not buying Amway goods or related training materials would make you better off.

A second job where you actually receive a paycheck is a better alternative. While there's no hype and hopes of getting rich in 2-5 years, you can do much for your future by saving a portion of that paucheck each month. If you are young, this especially applies to you. But anyone can help their future by saving and investing. Even someone who panhandles is morelikely to have nore net cash than most Amway IBOs.

Sure, some people do make money in Amway and some make a lot of money. The problem is they make money by exploiting their downlines and those hopeful downlines basically have no hope. In other words, you profit by selling false hope and false dreams. Basically, you can gain wealth in Amway by being a conman. Can you live with yourself in order to profit at any cost?

I haven't even gone into the amount of time lost chasing prospects and attending functions. Your time might be the most valuable commodity that is lost chasing the 2-5 year dream. Ask yourself this question. Where are these diamonds who did the 2-5 year plan living in luxury and doing nothing? I don't know of any/ Do you?

Wednesday, March 18, 2015

Based on my experience in Amway, my blogging experience, and observation of other people who give financial advice such as real estate gurus who teach you to buy property with no money down, or others such as Robert Kiyosaki for that matter, all show testimonials of sucessful people. Obviously they do not show you the vast majority of people who try their systems and fail. Of course it sounds nice to hear some story of a guy who was broke who somehow worked the system and made it big. What you don't see is whether that success story was actually true and the success is sustained, and you don't see thousands of other testimonials from people who used the same system with no results.

It is my informed opinion that whether it is Amway, WWDB, BWW, N21, real estate or the cashflow business, the vast majority of people who try these systems do not make any kind of significant income. Sure, some do, and those are shown as the possibilities. But if you watch infomercials, you will see in small print on the bottom of the screen, "unique experience", your results may vary. I believe that a similar message used to be at the end of Amway diamond recordings as well. It is a simple case of IBOs showing the best case scenario and not what is likely. It's not that much different than lottery in that you see the winners but you have to know that there are thousands and thousands of people who played but did not win.

These systems in general do not work for various reasons. Many people simply do not have the acumen to work the system. Or the system has too many variables for the system to work, or the system calls for things beyond your control. For example, success in Amway generally requires you to sponsor others, something that is beyond the control of most people. Add in the lazy and people who are hoping for a quick score and it is understandable that most will fail. But these systems are often set up where the majority simply cannot all succeed. Nowhere is that more true than the Amway business where the pyramidal compensation plan nearly guarantees failure for the lower level IBOs. Even in the common 6-4-2 plan, there is one platinum and 78 downline IBOs. By the way, what the odds of you and your downline sponsoring 78 people, all of who will move 100 PV?

So what can someone do? Well, it may no be as sexy or attractive but a part time job and investing and saving might be something to think about. Even a part time business where you focus on selling products for a profit might work. It just seems prudent to avoid these "systems" as the primary beneficiary of these "systems" are the ones who directly profit from them.

Monday, March 16, 2015

Over the years, I have seen literally hundreds (if not more) blogs and testimonials about Amway. Most of them decry the pitfalls of being an Amway IBO. Most of the complaints cite the fact that Amway in general has higher prices than comparable retailers and the fact that the system consisting of voicemail, books, cds and seminars ate up any profits the IBO may have made and resulted in net losses for most. One particular Amway apologist bemoans the fact that the internet is full of bad testomonials about Amway. The reason why there are so many negative testimonials about Amway is because over the years, thousands, possibly millions either had a bad experience for the reasons I cited above, or personally know of someone who had a bad experience.

Amway defenders will often cite the fact that many IBOs sign up and "do nothing" as their defense to this. But I will easily point out that I haven't seen anyone say they signed up, failed to do anything or order products, quit and started blogging about a bad experience in Amway. These defenders will also compare Amway to the gym where people sign up and "do nothing". Whether true or not, I also do not see people who sign up and "do nothing" complain about not receiving health benefits by simply signing up. It is a very weak defense. Conversely, I have seen numerous accounts of folks like myself who did put in effort, some for many years, who did what upline advised and did not see the financial rewards that is promoted in "the plan".

Amway defenders will then try to justify themselves, saying that the better business bureau (BBB) receives few formal complaints about Amway. I will agree with this. Many IBOs never bother to file formal complaints to the BBB or to Amway because in many, probably most cases, the person who quits and may have had a bad experience, was sponsored into the business. The sponsor was often a friend or family member of the IBO who left the business. Many will simply leave and forget the episode and chalk it up to a learning experience in life. Some will complain, but really have to ne venue to voice their remorse about joining. Some of us have found the interent to be quite effective in sharing our experiences and our opinions on why the business did not work. This is what one Amway defender calls the "internet war". What I have pointed out is that critics most often simply point out what the IBOs themselves have done. In many cases, the IBO is his own worst enemy. Afterall, critics didn't deny Amway and Quixtar had a connection, nor did critics make up claims about perfect water, etc.

It would appear that most of the problems has a root in the AMO systems, such as WWDB, BWW, LTD, or N21. Now, not all upline leaders are unethical, but it appears that many are, and new IBOs have no way to identify the good from the bad. It also appears that some of these upline leaders will issue bad avice. Advice that is detrimental to the IBOs, but financially beneficial to themselves, such as telling IBOs to never miss a function, or to buy more cds. In many cases, these unethical uplines do not care about IBO success, their goal is just to move as many support materials as possible, so they can fund their "diamond" lifestyle. Sadly, it is also apparent that the diamond lifestyle may be a facade in some cases. An illusion of wealth portrayed as a recruiting tool.

If you recognize some of these warning signs, ask tough questions of your potential sponsor and visit this or some of the blogs linked to this one for more information.

Friday, March 13, 2015

One of the things I heard as an IBO and I believe is still said in some Amway meetings is that conventional businesses do not profit for up to five years. That's bogus. Conventional businesses make a profit as soon as they sell their first product. They may not have a net profit right away because of the initial investment into equipment and rental property, but they do profit by selling goods. The same principle would apply to an Amway business except that Amway IBOs have difficulty selling products. If you opened an Amway catalog and compared their prices to local retailers, you would know what I'm talking about.

Despite the small start up costs and the little to no overhead costs, most IBOs never turn a profit. I will acknowledge that many IBOs probably never do a single thing once they sign up. I believe there is an underlying story behind this as well, but I will move on. Out of the more serious IBOs, even in this group, most of them will never make a net profit if they are using tools. Factoring the cost of the website, the voicemail, standing orders, books and functions and cds, IBOs simply get drained of their money a couple hundred of bucks a month at a time. Amway uplines meanwhile, are earning profits on product purchases and someone upline are also earning profits on the tools. The tools carry a higher profit margin so it would make sense that some upline earns ore from tools than from Amway.

Toss in other challenges such as high prices for many products (higher than local retailers) and a spotty reputation from IBO behavior such as tricking people into meetings and you have an opportunity with nearly insurmountable handicaps. Yes, a few rare few and usually charismatic people can overcome these odds, but only one or two out of tens of thousands are able to do so. And even those whe reach the pinnacle of diamond, may not be able to maintain qualification. It's very common for someone to reach the level of emerald or diamond only to backslide and not qualify the following year. So much for residual income and walking the beaches of the world.

So I don't know the detailed statistics about how long it takes for a conventional business to turn a net profit. It may take up to five years. But based on my experiences and some number crunching, I'd have to say that the vast majorty of Amway Business Owners NEVER TURN A PROFIT - EVER, and most of them ending up with net losses when business expenses are factored in.

Thursday, March 12, 2015

One of the disturbing things I have noticed about Amway IBOs and IBO leaders is how they wlll tell downline to trust them. To trust them as they have already blazed a trail. No need to re-invent the wheel. Just ride the coattails of your upline to success. The system is proven. Many IBOs take this to heart and put forth tremendous effort. Then when they fail, upline will shun them and tell them that the failure is their own. That they are personally responsible for failure. Why should IBOs trust in their upline and then be held accountable for failure even if they did everything they were asked to do?

Now I am not talking about IBOs who sign up and do nothing, or never place an order. I do believe that the fact that many IBOs sign up and do nothing brings concerns about how these IBOs were recruited, but I do not recall ever seeing an IBO do nothing and then complain that Amway was a scam or anything like that. But many IBOs who put forth real effort should see success if they do as they are advised. But still, this doesn't seem to be the case when you analyze Amway in depth.

I have found, however, that many people who are critical of Amway and the systems, put forth much effort, did everything they were told, and did not find the success that upline promoted, or in some cases, guaranteed. My former sponsor was still active last I heard and has been in Amway for over 20 years. I do not believe he has ever gone beyond platinum, and I know that he was never a Q12 platinum. Some Amway apologists might see being a platinum as a bonus, but when you are hard core sold out to the systems, platinum is a break even or make a small profit business at best. . Factor in that time spent by husband and wife and these folks are breaking even or making a fraction of minumum wage or even taking losses, depending on you level of commitment.. Is this the dream that will allow you to buy mansions with a cash payment? A couple working for break even money is wasting their time. Their kids lose valuable time with parents and the net result is negligible. How many people will actually look back at their time in Amway and say the time was well spent?

What is also disturbing is how people will tout the system as responsible for any success, but hide the vast majority that the system doesn't help. Sure, some will succeed in Amway, but for every success, there are hundreds if not thousands who fail. And if you consider diamond as the benchmark of success, the failures could be in the millions. As I said, some succeed, but very very few in relation to the number who try. Going diamond is probably less common in the US than winning the powerball lottery. I've heard of more big lottery winners than new diamonds emerging in Amway North America.

Succeed and the systems and upline take credit, but fail or quit and it is your own responsibility even if you did the work. Are these the kinds of leaders or mentors you want advice from?

Tuesday, March 10, 2015

I hear Amway supporters often mention that you will have a real business if you treat it like one. It is my observation that most IBOs do not treat their businesses like a real one. It is also my opinion that the Amway business itself is flawed and many IBOs, in their zeal to sponsor downline, do crazy things at times, such as tricking people into meetings. These past behaviors of IBOs have led to Amway having a bad reputation and causing people to be skeptical whenever they are asked about some online business, "ecommerce" or whatever buzz words IBOs are using these days.

Also, many IBOs do not bother to qualify their prospects. They will sponsor anyone who is breathing. It could be due to uplines making the business seem easy. For example, I have heard that going platinum is so easy that someone's dog can go platinum. Another mistake IBOs make is they do not look at the likelihood of an IBO succeeding. They will sponsor anyone, anywhere, anytime. Like real stores, opening a new one creates competition and I don't know of any IBOs who take this into consideration before recruiting a new prospect. While you can potentially profit by leverage from those you sponsor, they can also become your competition for potential customers and new recruits, especially if your new downline is a friend of yours who may have common friends and acquaintances.

New recruits are also encouraged to partake in the teaching system, regardless of their expectations and business goals. This participation in the system is what often leads to IBO financial failure. They spend more on tools than what they generate in income. This heavily contributes to the poor retention rate among IBOs. Even IBOs who can progress and make some money will be simply channeling their profits to upline by their tool consumption. It is my informed estimate that an IBO must reach 4000 PV or to the platinum level before they start to break even. And If I might add, probably less than one half of one percent of IBOs reach the platinum level so you are already facing overwhelming odds just to reach the break even point in Amway.

Here's the real test for an IBO. Walk into a bank. Speak to a loan officer and show the loan officer the 6-4-2 or 9-4-2 plan, whichever plan your group uses. And see if the loan officer will grant you a loan based on that plan. It is more likely that you be laughed out of the bank.

Monday, March 9, 2015

In the Amway business, most active IBOs are advused to trust upline. To think of upline as a coach or a mentor. These upline mentors or coaches are supposed to have your best interest at heart and they will guide you to success if only you will be open to learning. Many uplines, including my former uplines used to coin the term "copy" or duplicate. If you can do that you will be successful. Even the simplest of people can copy. The upline may crack a joke about getting thru school by copying. Thus, many IBOs follow exactly what their upline advises them to do.

But then uplines turn the responsibility away from themselves. Many Amway defenders will also claim that downline should not simply follow the advice of upline. They may make a ridiculous claim that standing orders and functions contain advice that must be discerned. That information is like a buffet. You pick and choose what you need and discard the rest. If you are a new IBO or prospect, let me tell you that is a load of guano (crap) that is being heaped on you. Your upline is touted as having experience and wisdom in the Amway business, which is why you are paying good money for voicemail, books, cds, and functions. So why would their advice be something you pick and choose? How would a new IBO know what to pick and choose?

Imagine hiring a guide for a trek in the wilderness. The guide is supposed to be an experienced outdoorsman, perhaps an expert. So if he recommends that you eat certain plants or fruits, you trust that he is going to guide you right. Imagine eating something that made you sick to your stomach, only to have the guide tell you that he just points out plants and fruits and you have to discern which is good for you and which is not. You would fire the guide and tell everyone you know not to use that guide anymore.

But here we have these "systems" such as Network 21, WWDB or BWW that have been "guiding" IBOs for up to 20 years or more in some cases, and the number of diamonds are negligible. Sure there are many new platinums, but many tool consuming platinums have been found to be losing money or making very little money for their efforts. What's more, it would appear that Amway is losing ground in North America based on sales. One can reasonably guess that any new platinums that break are simply replacing the volume for a platinum that no longer exists or a platinum that no longer qualifies. My former upline diamond appears to have all new qualifying platinums from the time I was in the business and here's the kicker. My former diamond had 6 downline rubies. As far as I know, none of these rubies are qualified as platinum anymore, although I have heard that some of these are still active.

Uplines also program their downline to take responsibility for the failure. Thus you have IBOs who did everything that was asked of them, only to fail. Yet these IBOs often blame themselves for their failure. It is my opinion that former IBOs who did everything asked of them only to fail should file a formal complaint against their LOS with the better business bureau. Amway defenders like to think that a lack of formal complaints means that the system works when clearly, there is no unbiased substantial evidence to suggest that the system works. It looks like some succeed in spite of the system, not because of.

The catch in all this is uplines skirting responsibility for the outcomes of those they "mentor" and profit from. IBOs should ask if upline really cared about their success, why do you have to pay for any help that you receive from your upline diamond?

Friday, March 6, 2015

So many IBOs have grandiose dreams of untold wealth, financial freedom. They think they will "build it once' and sit back on the beaches of the world sipping exotic drinks while the 6 figure checks keep coming in the mail. Sure it's a nice thought, but not a single IBO I have encountered can name a single IBO who achieved diamond, and walked away from the business to enjoy freedom while the money pours into their bank accounts. It is very likely that nobody like this exists. I suppose someone could go diamond and walk away from the business and still earn some bonuses, but very quickly, that business would likely fall out of qualification and the bonuses would shrink to nothing very quickly. Also, to earn bonuses, I believe an IBO needs to have side volume exceeding 2500 PV, which is roughly $7500 monthly in personal group volume. With normal attrition, it's easy to see how a diamond business can fall apart faster than a cheap suit without maintenance.

I also see and hear many IBOs popping off about how someone in their upline is earning $60,000 a year. While it may seem like a nice income to someone who has a low paying or entry level job, that income is gross and may not leave much left after taxes and associated business expenses. Even a diamond with an average income of $150,000 in a year likely has a very low monthly income from Amway as much of that income comes in the form of an annual bonus. As a former emerald once told me, you needed to budget out that annual bonus or you could be in financial trouble later in the year, if Amway is your sole source of income.

Also, you may have seen diamond showing off sports cars and other displays of wealth. My former LOS, WWDB has a function called "Dream nite" where they show off lavish displays of wealth. Well, it is my informed guess that most diamonds cannot afford the lifestyles and toys that they show off in these functions. If you do the math, you can see that after taxes and other expenses, a diamond lifestyle is likely to be quite ordinary. Normally, nobody would care about this but since diamonds use this display of wealth to recruit IBOs and to sell tools, it is significant for IBOs to know.

While it is great for someone to have dreams and goals, it is also important to have achievable goals. It is simply impossible for a room of IBOs to go diamond and to earn the kind of income that is shown in "the plan". Amway recruiters will show you "what's possible", but not "what's likely". To put perspective on that, it's "possible" that you can start a software company that puts microsoft out of business, but it's not likely. It's possible for you to win the lottery, but not likely. My advice to IBOs is not to quit your day jobs - ever. Your dreams and goals can be accomplished in many ways, but it is unlikely to be achieved with an Amway business.

Wednesday, March 4, 2015

Buy products, sell products, sponsor others. That is a summary of the Amway business in a nutshell. If you have bought and sold Amway products, you already possess the main skills needed to run an Amway business. If you have also sponsored downline, you probably have all the skills needed to build an Amway business. So the question is how much training and tools are needed? Is the investment in tools worth the price for what you get in return? In my informed opinion, I would have to resoundingly say "no". What makes the tools business a money pit of IBOs is that it never stops. There is never an end to the training. And the new guys and the 10 years veterans get the same training. Think about that for a minute.

For many IBOs, the tools are the reason why they are unable to profit. Voicemail for example, is an outdated tool that costs more than most IBO's bonuses. With the ability for IBOs to use email, twitter, or facebook, voicemail is an outdated and frankly, a less efficient manner for an upline to communicate with their groups. Standing orders, while some training and advice may be helpful to IBOs, a weekly subcription quickly becomes an expense that an IBO can do without. My upline swore that tapes/cds were vital in sponsoring others, but I had never sponsored, or knew of other crossline who used a tape/cd to sponsor someone. As I said, if you already sold a product and sponsored downline, you probably already possess the skills needed to build an Amway business. Uplines could easily use youtube to transmit vital information to downline if it would help downline. But cds are sold because the upline doesn't make a profit by giving you vital information via youtube.

Functions, especially the ones that require airline travel are the most costly and gives the least return on investment. You leave your home and business to attend a function somewhere. You incur a lot of cost and while you are gone, your business is closed. For most IBOs, they will never recoup the expense of one of these functions, let alone having multiple functions througout the year. Also, the functions appear to be more of a social event than an actual business seminar. Sure, the bright lights and touching speeches may inspire you, but how does that translate into business growth? I never observed appreciable growth in my group or crossline as a result of a big function. Sure, there may be exceptions, but overall, the functions were just a drain on IBO resources. It did not result in increased sales unless the fired up IBOs sponsored others who bought products. Teaching some to sell product wasn't a part of the function.

It is my observation that when uplines talk about tools being "needed", they are saying it because upline needs you to buy tools. For many uplines, the tools business is their primary business with Amway being secondary. Some uplines earn far more from the tools sales than from Amway. For that reason, the tools sales are "needed". If you are new or seeking information, try asking upline or your sponsor, what tangible benefit can be received by attending a big function. My sponsor told me that he could not describe the event, that I simply "needed" to attend it in person and see for myself. After my first major function, I did not see what the big deal was. I had to use time off from work, incur some fairly large expenses for travel and it did not result in business growth. Ironically, my business would have had a net profit if I had not attended the function.

So are tools needed? It is my opinion that some tools may be helpful to an IBO, but if the tools do not directly teach you to sell Amway products or result in you being able to sponsor downline, the tools purchases can be questionable as it won't help your bottom line. However, your continued tool purchases greatly benefits your upline diamond's bottom line. Always remember that the training is supposed to result in more sales or more sponsoring. If it doesn't, you should assess whether you "need" anymore training until that happens.

Tuesday, March 3, 2015

I recently came across some comments on a blog indicating that they had recently heard comments about "Pigs don't know pigs stink". This stems from a tape/cd recorded by a diamond named Dave Severn. The slogan was very popular when I was an IBO and I'm sure that some IBOs still toss around the phrase. It was basically used to describe people who wren't in Amway. They worked hard at their jobs but they were "broke" and weren't getting anywhere. At least the IBOs (who were also broke) were doing something about their financial situation (Amway!). So the ignorant rest of the population didn't know any better, thus the term pigs don't know pigs stink. (but at least people with jobs actually earned money)

Having been out of the business and having done a great deal of research about Amway and the Amway groups such as WWDB and BWW, I can say the exact same thing about IBOs. IBOs don't know IBOs stink. Of course I don't mean that literally, but business building IBOs order their products each month. They pay for their standing orders and attend all the functions. They try to recruit new prospects and they use all the catchy phrases taught by their upline or off a cd. They are very likely losing money each and every month, all the while thinking they are becoming successful and better or nicer people. At the end of the year, they sometimes suffer massive losses in the thousands because purchasing all of the tools and training materials add up to a tidy sum of cash after a while. Add that to the cost of "personal use" and Amway can cost you hundreds of dollars or more. It would depend on your dedication to the cause, or as some upline say, "how teachable you are".

At the functions, the IBOs smile and act positive, even when they are losing their shirts. Upline will edify their dedication and teach them two very important, but self serving pieces of advice. They will teach IBOs to never quit, and that if IBOs quit or fail, it is always their own fault, even if they did everything upline taught them. In this manner, upline removes themselves from any responsibility for the IBO's failure. Ironically, upline is quick to accept responsbility for any success (even if there is little). All the while, IBOs are attending all the meetings, doing all the steps they have been taught. They act alike and in many cases, look alike. Most of them also share a common result. They are losing money, and many are losing lots of it. They are simply taught to ignore the losses and to remain positive. Most people eventually figure it out and walk away from Amway. Most will never mention their involvement again and because many are sponsored by friends and family, will never file any formal complaint or dicuss their displeasure. Many just move on and chalk it up as a life lesson.

The IBOs continue to associate with their positive and active fellow IBOs, all the while their bank accounts are shrinking and transfering funds to upline. Pigs don't know pigs stink indeed.

Monday, March 2, 2015

When I was an IBO, I was always taught that diamonds pay cash for everything. That one day, after following the foolproof WWDB system, that I too, would be strolling on the beaches of the world, with cash rolling into my bank account with no worries in the world. We were told that diamonds pay cash for all purchases, even homes and other large ticket items. As evidence, the diamonds would show slideshows of mansions and sports cars, golf club memberships and other lavish items. All paid for in cash we were told. I have reason to believe that WWDB still teaches this except that it is a bunch of lies.

First of all, in looking back, the group really had no way of knowing what was paid for or not. We just assumed that diamonds made so much money that everything the diamonds spoke of were true. However, there have been events, some very recent that exposed some of the apparent lies told by these diamonds. There were two (2) diamonds whose home foreclosures became public knowledge and a prominent triple diamond who was involved in bankruptcy proceedings. Now your home cannot be foreclosed if it's paid for in cach right? Technically, nobody would care whether a diamond's home was mortgaged or paid for, but when diamonds parade in front of a crowd bragging about wealth, and then telling the audience that they too will achieve the same success by following the system and upline advice, well that's a bit misleading in my opinion. So many people in the audience are practically crying because they want what the diamonds are flaunting, except that possibly, many of these diamonds don't even have what they are selling.

A average diamond might make about $150,000 (according to Amway) and let's just say another $150,000 from selling support materials. When you factor in taxes and business expenses such as travel to and from functions, what's left over certainly is not going to allow you tp purchase million dollar mansions. Some higher up pins might make a bit more, but still, purchasing mansions and other luxuries in cash is a stretch. It would be my guess that most diamonds indeed have a mortgage on their homes and may even have car payments. That's not a crime but it is unethical to lie about your income in order to recruit new downlines. The average diamonds likely live closer to a middle class lifestyle than that of a jetsetter.

For IBOs and other newbies, if your uplines are bragging about paying for homes and other things in cash, ask them to show proof of these claims. I can show you pictures of multi million dollar mansions and sports cars, it doesn't mean that I paid for them in cash or that I even own them. But then again, admitting to having a mortgage or having monthly car payments are not quite as attractive or exciting as paying for these things in cash.

About Me

I am writing this blog based on my experiences in the Amway/Quixtar business and the opinions I have formed based on those experiences.
I ran a 4000 PV business (with eagle parameters) only to discover that I was not profitable!
I'm not here to encourage any IBOs to quit, nor do I wish anyone to fail. I do encourage IBOs to ask their upline tough questions and I encourage IBOs to closely monitor their profit and losses as does a traditional business owner.

Guess who won? Amway – Prices Comptetive? Funny Story, the other day at work, I get a call from a friend, asking me to deliver a package f...

Followers

Privacy Policy

Information Collection:

All web servers trace very basic information about their visitors. This information includes, but is not limited to, IP addresses, browser details, timestamps and referring pages. None of this information can personally identify specific visitors to this site. The information is tracked for routine administration and maintenance purposes.

Cookies:

Where necessary, this site uses cookies to store information about a visitor's preferences and history. Advertising partners and other third parties may also use cookies, scripts and/or web beacons to track visitors to our site in order to display advertisements and other useful information. Such tracking is done directly by the third parties through their own servers and is subject to their own privacy policies.

Privacy:

Note that you can change your browser settings to disable cookies if you have privacy concerns. Disabling cookies for all sites is not recommended as it may interfere with your use of some sites. The best option is to disable or enable cookies on a per-site basis. Consult your browser documentation for instructions on how to block cookies and other tracking mechanisms.